IT DEPARTMENT MOVES HC AGAINST STAR GROUP OVER TAX EVASION

The Income Tax Department today moved the Bombay High Court against the Star Group for allegedly evading tax running into hundreds of crores. A Division Bench of Justice F I Rebeillo and R S Mohite admitted the petition filed by the department seeking direction to Star Group to pay tax amount, legal sources said. About ten channels owned by the Group, including Star Movies, Star Plus, Star World and Channel V, have "evaded" tax approximately amounting to Rs 2,600 crore, according to the department. The department had earlier moved the Income Tax Tribunal, which directed the Star Group to pay the tax. The I-T Department's contention was that as they (Star Group) had links with Indian companies, they should pay taxes here despite being based overseas, said their lawyer Beni Chatterji. Star Group, however, had approached the Settlement Commission, where it submitted that it was ready to pay Rs 1,500 crore. The Commission accepted the Star Group's submission and asked I-T department to settle the matter. The department, however, moved the High Court challenging the Commission's order and sought payment of full tax amount by the entertainment and media giant. – www.outlookindia.com